Improving organisational design and managing the human resource fow

Models of Organisational Structure

• Functional Structure

• Product-Based Structure

• Regional Structure

• Matrix Structure

Give an overview of functional structure and one strength and weakness.

• Overview: Employees are grouped based on their job functions (e.g., marketing, finance, HR). Each function has its own department and a head who reports to top management.

• Advantages: Specialization leads to efficiency, clear career paths within functions, and strong coordination within departments.

• Disadvantages: Can create silos, making communication across departments difficult, and may limit flexibility and responsiveness to changes.

Give an overview of product based structure and one strength and weakness.

• Overview: The organization is divided based on different products or product lines, with each product having its own management team overseeing its development, marketing, and sales.

• Advantages: Focuses attention on product development, allows for specialization around specific products, and can be more customer-oriented.

• Disadvantages: Potential duplication of resources and effort across product lines, and may create competition between product teams rather than collaboration.

Give an overview of regional structure and one strength and weakness.

• Overview: The business is structured around geographic regions, with each region having its own management team that oversees operations in that area.

• Advantages: Allows for tailored strategies that suit local markets, improves responsiveness to regional differences, and can increase local accountability.

• Disadvantages: Can lead to duplication of roles across regions, reduces economies of scale, and may cause inconsistencies in policies or practices across regions.

Give an overview of matrix structure and one strength and weakness.

• Overview: Combines elements of functional and product-based structures. Employees report to both a functional manager and a product or project manager, creating a dual chain of command.

• Advantages: Enhances flexibility and collaboration across departments, allows for better resource allocation, and encourages knowledge sharing.

• Disadvantages: Can create confusion over reporting lines, potential for conflict between managers, and adds complexity to the organizational hierarchy.

Influences on organisational design

• Authority

• Span of control

• Hierarchy

• Delegation

• Centralisation and decentralisation

Give a definition of authority and what influence it has.

• Definition: Refers to the power or right to give orders, make decisions, and enforce obedience within the organization.

• Influence: The level of authority shapes decision-making processes, the chain of command, and overall control within the organisation.

Give a definition of span of control and what influence it has.

• Definition: The number of employees directly managed by a single manager.

• Influence: A wider span (more employees per manager) can lead to more autonomy for employees but may reduce the manager’s ability to provide close supervision. A narrower span allows for closer management but can slow decision-making.

Give a definition of hierarchy and what influence it has.

• Definition: The levels of management within an organization, from top to bottom.

• Influence: The hierarchy affects the flow of communication and authority. A taller hierarchy has more management layers, which may slow decision-making but increase control. A flatter hierarchy can speed up communication but reduce managerial oversight.

Give a definition of delegation and what influence it has.

• Definition: The process of assigning responsibility and authority to employees at lower levels of the hierarchy.

• Influence: Delegation can empower employees and develop their skills, while also freeing up managers to focus on higher-level tasks. However, ineffective delegation can lead to confusion or lack of accountability.

Give a definition of centralisation and decentralisation and what influence it has.

• Definition:

  • Centralisation: Decision-making is concentrated at the top levels of the organisation.

  • Decentralisation: Decision-making is distributed to lower levels.

• Influence: Centralisation ensures consistency and control but may lead to slower responses to local needs. Decentralisation encourages flexibility and faster decision-making but can reduce uniformity and control.

The Value of Changing Organisational Design

Improved Efficiency: Streamlining the structure can reduce bureaucracy, speed up decision-making, and improve productivity.

• Greater Flexibility: A more responsive and adaptable design allows the organization to better handle changes in the market or environment.

• Enhanced Communication: Flattening the hierarchy or widening the span of control can improve communication flow within the organisation.

• Better Employee Engagement: Delegation and decentralisation can empower employees, increasing engagement and job satisfaction.

Human Resource Flow (5)

• human resource plan

• recruitment

• training

• redeployment

• redundancy

Give a definition for Human Resource Plan and the impact it has.

• Definition: A strategy for ensuring the right number of employees with the right skills are in place at the right time.

• Impact: Helps in forecasting future staffing needs, addressing skill gaps, and planning for recruitment or training.

Give a definition for recruitment and the impact it has.

• Definition: The process of attracting, selecting, and appointing suitable candidates for roles within the organization.

• Impact: Recruiting the right talent is essential for achieving HR objectives like employee engagement, diversity, and skill alignment.

Give a definition for training and the impact it has.

• Definition: Providing employees with the skills and knowledge needed to perform their roles effectively.

• Impact: Training helps achieve objectives like talent development, increasing employee productivity, and meeting future skill requirements.

Give a definition for redeployment and the impact it has.

• Definition: Reassigning employees to different roles or departments within the organization.

• Impact: Redeployment helps retain valuable employees, ensuring that their skills are effectively utilized, while reducing redundancies.

Give a definition for redundancy and the impact it has.

• Definition: The process of terminating employees' roles when their jobs are no longer required.

• Impact: While sometimes necessary for cost control or restructuring, managing redundancies effectively ensures minimal disruption and helps protect the employer's brand and employee morale

The Value of Managing Human Resource Flow

• Alignment with Business Goals: Ensures that the organization has the right people, in the right roles, at the right time to meet strategic objectives.

• Cost Efficiency: Managing the flow of recruitment, training, and redeployment helps control costs related to hiring and turnover.

• Skill Development: Planning for training and development ensures that employees are continuously improving and contributing to organizational success.

• Employee Retention: Effective management of human resource flow helps retain talent by offering opportunities for development and redeployment, improving job satisfaction.